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      Question

      What is the maximum cap on First Loss Default Guarantee

      (FLDG) under RBI’s co-lending rules?
      A 7% Correct Answer Incorrect Answer
      B 4% Correct Answer Incorrect Answer
      C 5% Correct Answer Incorrect Answer
      D 6% Correct Answer Incorrect Answer
      E 3% Correct Answer Incorrect Answer

      Solution

      The RBI’s co-lending reforms introduced a 5% cap on FLDG, which limits credit risk that can be passed on to lending partners, particularly in partnerships involving fintechs or NBFCs.

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